BMI Stock Badger Meter: Analyst Buy Initiation - Jan 14
The Big Picture
Badger Meter ($BMI) is back in the spotlight as analysts and trade outlets spotlight its role in smart-water infrastructure and IoT-enabled metering. Jefferies has initiated coverage with a buy rating while multiple research notes point to above-market revenue and earnings growth estimates.
For investors, the story centers on durable demand for smart metering, recurring revenue from connected services, and recent analyst upgrades versus a backdrop of near-term share-price volatility.
What's Happening
Coverage and commentary on $BMI has accelerated across mainstream finance outlets. Analysts and reporting emphasize the company’s positioning in smart-water solutions and recent research upgrades.
- Jefferies initiated coverage of Badger Meter with a buy rating, citing intact smart-water demand (reported on Yahoo Finance news aggregation).
- Analyst growth estimates on Yahoo Finance show sales and earnings expanding faster than the S&P in some periods: current-year sales growth is estimated at 13.72% with next-year growth at 12.69%.
- Revenue consensus (USD): current quarter avg. estimate $232.3M; next quarter $242.63M; current year $927.47M; next year about $1.0B. Year‑ago sales for the current year base were $826.56M, per Yahoo Finance analysis tables.
- Earnings history shows mixed quarter-to-quarter results versus estimates: actual EPS for the last four reported quarters were $1.04, $1.30, $1.17 and $1.19, with surprise percentages ranging from -6.69% to +23.27% in those periods.
Market commentary from outlets aggregated by Yahoo Finance, including Zacks, Motley Fool, Simply Wall St., GuruFocus and others, has framed $BMI as a ‘quiet enabler’ of smart water infrastructure and flagged both long-term upside from IoT-enabled services and near-term share-price swings.
Market Impact
Short-term market reaction has been mixed: reporting shows recent headlines about share weakness even as analysts adjust estimates higher. Yahoo Finance lists a last-quoted price of 171.00 for $BMI on its company quote page.
Sector implications are clear: as investors rotate toward industrial tech and IoT winners, peer names and suppliers in utility metering and infrastructure monitoring may see correlated flows. Relevant peers and comparable tickers in published analysis include $ITRI, $TRMB and $TDY.
What to Watch
Key near-term and medium-term drivers for $BMI will come from quarterly results, execution on connected-service rollouts, and how the market prices recurring revenue growth into valuation.
- Upcoming revenue and EPS prints versus consensus: Yahoo Finance shows current quarter consensus revenue of $232.3M and next quarter $242.63M, monitor actuals against those levels.
- Analyst coverage and revisions: the analysis page notes varying analyst counts (9 for current quarter, 6 for next quarter, 11 for the current and next year); changes in those estimates can move sentiment.
- Product and commercial milestones tied to smart-meter deployments and any reported service deals (commentary from Simply Wall St. referenced a SmartCover-related narrative in its coverage).
- Risks: recent coverage also notes share weakness and periodic earnings misses in some quarters; investors should monitor margin trends and execution against IoT revenue targets.
Bottom Line
- $BMI is gaining renewed analyst interest as a play on smart-water infrastructure and IoT-enabled metering, with Jefferies initiating a buy and multiple outlets highlighting the narrative.
- Consensus revenue estimates point to mid-teens growth on a year-over-year basis for the current year, with street estimates ~ $927M for the full year and roughly $1.0B for next year.
- Earnings have shown variability: recent quarters delivered both upside and downside surprises versus estimates, monitor quarterly results closely.
- Investors should watch execution on connected services, upcoming earnings vs. the $232.3M current-quarter revenue consensus, and any changes in analyst estimates or guidance.
- Consider position sizing against execution risk: the smart-water thesis is compelling, but short-term volatility has been notable in recent coverage.
FAQ
Q: Is Badger Meter a buy right now?
A: Several outlets and Jefferies have recently expressed bullish views, but investors should compare recent execution and upcoming quarterly results to consensus estimates before deciding.
Q: What growth does the street expect for Badger Meter?
A: Yahoo Finance aggregate estimates show current-year sales growth near 13.72% with next-year growth around 12.69%; revenue estimates are roughly $927.47M for the current year and about $1.0B for next year.
Q: What are the main risks to the thesis?
A: Near-term risks include quarter-to-quarter earnings variability (past surprise percentages have been both positive and negative), execution on IoT and service rollouts, and short-term share-price volatility highlighted in recent coverage.